I just had this very same issue after installing Jaunty from the
alternate disk and afterwards switching to grub (I hate LILO).

I just today found that there were these two lines missing in the file
/etc/kernel-img.conf:

postinst_hook = update-grub
postrm_hook = update-grub

I have no idea where those lines should have come from, but after
inserting them into that file the update-grub skript was called. Could
this be your Problem?

-- 
menu.lst not updated after kernel update
https://bugs.launchpad.net/bugs/290140
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